HDMF Press Release dated January 19, 2024
Pag-IBIG members to gain more benefits under new rates starting February 2024
Pag-IBIG Fund members are set to enjoy doubled savings and higher cash loan entitlements while continuing to have access to affordable home loans, as the agency is set to increase the nearly four-decade old mandatory monthly savings for both members and their employers starting February 2024, officials announced Wednesday (17 January).
Under the agency’s new rates, the monthly savings of Pag-IBIG Fund members for both the employee’s share and the employer’s counterpart shall increase to two hundred pesos (₱200) each from the current one hundred pesos (₱100). This follows the adjustment in the maximum monthly compensation to be used in computing the required two percent (2%) employee savings and two percent (2%) employer share for Pag-IBIG Fund members, which shall now increase to ten thousand pesos (₱10,000) from the current five thousand pesos (₱5,000).
Pag-IBIG Fund’s new monthly rates were initially approved by its Board of Trustees in 2019, after obtaining the concurrence of stakeholders to implement a scheduled increase in 2021. During that time, the agency saw the increase necessary as it projected that the amount of loans disbursed will eventually outpace the total collections from both loan payments and members’ savings. However, due to the difficulties brought about by the COVID-19 pandemic in 2021 and 2022, the Pag-IBIG Fund Board deferred the increase of the agency’s savings rates.
The agency again deferred the implementation of the increase in 2023, following the request of the Employers’ Confederation of the Philippines (ECOP) to provide the business community with time to further recover from the continuing financial challenges due to the health crisis. The deferment was also the Pag-IBIG Fund’s response to the call of President Ferdinand Marcos, Jr. early last year, to alleviate the financial burden of fellow Filipinos due to the prevailing socio-economic challenges brought about by the COVID-19 pandemic.